The Many Benefits of Forming a Company in the Free Zone
Operating a business in Dubai’s Free Zones has an expansive range of advantages that make conducting business simple and effective. But beyond modern infrastructure and business-friendly regulations, what are some ways founding a company in this region can benefit you?
• 100% Tax-Free
Businesses operating in Dubai’s Free Zones are not subject to corporate or income taxes, allowing you to keep more profits.
• 100% Repatriation of Profits
In Dubai’s Free Zones, you’re permitted to return 100% of all profits to your home nation.
• Modern Services
Business formation processes and renewals can all be found online through easy-to-use portals, making crucial day-to-day business activities straightforward with minimal hassle.
• Proximity to Ports
Thanks to Dubai’s location near the gulf, exporting and importing goods is easy and affordable. This region is also near airports, highways, and well-built infrastructure.
• Regulatory Freedom
Dubai’s Free Zones each come with their own rules and regulations, allowing you to pick and choose a jurisdiction that works for your particular needs.
Documents Required to Form a Company in Dubai’s Free Zones
When you begin the process of business setup in a free zone, there are several steps you must complete before receiving your license. And to do that, you’ll need to gather several crucial pieces of information. These include:
- • Copies of Passports for all Employees and Shareholders
- • Copies of Visas
- • Two Passport-sized Photographs
- • Entry Visa and Stamp Pages
- • Memorandum of Association
- • Articles of Association
Once you’ve collected these documents, you’ll be prepared to start your business setup in UAE.
The Process for Opening a Free Zone Company in the UAE
Before you can start conducting business in one of Dubai’s many Free Zones, you’ll need to secure your business license. In most cases, this process can be completed via an online portal provided by the Department of Economic Development (DED). However, many entrepreneurs rely on consultant experts to handle this process. Whether you apply for your business license on your own or through a professional consulting agency, you’ll need to understand the process. Here’s what you’ll need to do:
1. Decide on a Business Activity
Dubai has thousands of different business activities that allow you to choose an enterprise that works for your skills and desires. The first step in this process will be to decide what type of product or service you intend to sell and how you plan to accomplish that. This will require you to draft a well-thought-out business plan that details your product, the competition, and the market forecast surrounding it.
2. Register Your Company Name
A business needs a name, and it’s time to choose yours! You’ll want to file a trade name request through the DED, ensuring that your chosen name is not in use and does not violate national policy.
3. Decide on a Company Structure
Your company’s legal structure will dictate how it handles investments, profits, losses, and more. You’ll be able to choose between a wide selection of business types that work for your particular desires and investment capabilities.
4. Apply for a License
Once you’ve gathered the documentation mentioned previously, you’ll want to complete your application via the online portal.
5. Apply for a Visa
In addition to your business license application, you’ll want to apply for visas for yourself, shareholders, and any employees or family. Although designed for simplicity, this process is often best handled by professionals.
6. Choose Your Office Space
A business needs an office! And Dubai’s Free Zones have plenty of options to choose from. From physical office spaces for your employees to simulated office spaces that allow you to conduct business virtually.
7. Pay Fees and Receive License
Once you’ve waited the prerequisite amount of time for processing, you’ll receive your business license. This license provides you with the legal authority to conduct business in the Free Zone of your Choosing.
8. Open a Corporate Bank Account
Your final step will be to secure a bank account with one of Dubai’s many international banking institutions. This account will allow you to exchange money for products and services, change currencies, and apply for business loans.
Dubai Free Zone Company License
Free Zone Company Licenses are a popular business type that allows entrepreneurs and business owners to conduct business in a wide variety of commercial activities while taking advantage of an expansive slate of benefits and advantageous regulations.
The process for achieving a Free Zone Company License is similar to the standard licensing process, except you’ll want to consult the governmental authority over that particular jurisdiction to begin the application.
The Cost of Business Setup in Dubai’s Free Zones
One of the most crucial aspects of running any successful business is understanding the cost of operation. You’ll need to account not only for startup costs and overhead but also for registration and licensing fees. As such, it isn’t easy to put a direct price on the total cost of your business startup. However, you can expect licensing fees to range between AED 10,000 and AED 50,000, depending on the nature of your business activity.
Furthermore, you’ll need to add in the cost of visa applications and any professional assistance you seek during the business setup process.
MSZ Consultancy Is Your Trusted Source for Business Knowledge
Whether you’re a single investor interested in knowing more about company formation in the UAE, or you’re part of a larger corporation hoping to found a new branch, MSZ Consultancy has the experience to deliver actual results. Our experts have years of expertise in assisting business owners in navigating the ins and outs of business applications, critical renewals, and visa processes. So, if you’re ready to let us bear the day-to-day tasks of operating a successful operation, call MSZ Consultancy at +971 52 544 1248. We’ll be happy to help!
Do you need help with determining startup costs? We have the knowledge you need! Do you require assistance with securing PRO services? We can do that, too! Let us take the weight of conducting business in the UAE off your shoulders so you can concentrate on what matters most.